−Removed: Please refer to Part I, Item IA - Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and Part I, Item 3 - Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q.
+Added: Please refer to Part I, Item 1A - Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and Part I, Item 3 - Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q.
Any of these factors and the factors described below could result in a significant or material adverse effect on Magnolia’s business, results of operations, or financial condition.
7 unchanged sentences
The outbreak and any preventative or protective actions that the Company or its customers may take in response to this virus may result in a period of disruption, including the Company’s financial reporting capabilities, its operations generally, and could potentially impact the Company’s customers, distribution partners, and third parties.
−Removed: In addition, most of the Company’s non-operational employees are now working remotely, which could increase the risk of security breaches or other cyber-incidents or attacks, loss of data, fraud, and other disruptions.
+Added: In addition, many of the Company’s non-operational employees are now working remotely, which could increase the risk of security breaches or other cyber-incidents or attacks, loss of data, fraud, and other disruptions.
Any resulting impacts from the outbreak cannot be reasonably estimated at this time, and may materially affect the business and the Company’s financial condition and results of operations.
5 unchanged sentences
Likewise, NGLs, which are made up of ethane, propane, isobutane, normal butane, and natural gasoline, each of which has different uses and pricing characteristics, have suffered significant recent declines in realized prices.
−Removed: In the three months ended March 31, 2020, benchmark prices for oil and natural gas declined significantly.
−Removed: These volatile conditions extended into the second quarter negatively impacting Magnolia’s realized price differentials.
−Removed: Should this volatility persist, Magnolia’s price realizations and production volumes could be negatively impacted.
+Added: During the six months ended June 30, 2020, benchmark prices for oil and natural gas were significantly depressed which resulted in a decrease in revenue in the second quarter.
+Added: Should this volatility persist, Magnolia’s price realizations and production volumes could be negatively impacted further.
The imbalance between the supply of and demand for oil, as well as the uncertainty around the extent and timing of an economic recovery, has caused extreme market volatility and a substantial adverse effect on commodity prices.
−Removed: The commodity price environment is expected to remain depressed based on over-supply, decreasing demand, and a potential global economic recession, as is evidenced by lower prices in the forward curve for oil for several years.
−Removed: Sustained periods of lower commodity prices, or further decreases, may
−Removed: reduce Magnolia’s cash flow and borrowing ability and may result in write-downs of the carrying value of its properties.
+Added: The commodity price environment is expected to remain depressed based on over-supply, decreasing demand, and a potential global economic recession, as
+Added: is evidenced by lower prices in the forward curve for oil for several years.
+Added: Sustained periods of lower commodity prices, or further decreases, may reduce Magnolia’s cash flow and borrowing ability and may result in write-downs of the carrying value of its properties.
If Magnolia is unable to obtain needed capital or financing on satisfactory terms, its ability to develop future reserves could be adversely affected.
2 unchanged sentences
If Magnolia curtails its drilling program, the Company may be unable to hold leases that are scheduled to expire, which may further reduce reserves.
+Added: In the second quarter of 2020, the Company temporarily shut in some low producing wells due to depressed commodity prices.
+Added: Additionally, some of the Company’s non-operated wells were shut in.
+Added: Many of the wells have returned to production and there was not a significant impact on net production, however, should sustained periods of lower oil and natural gas prices persist, the Company may further shut in wells or curtail production.
As a result, a substantial or extended decline in commodity prices may materially and adversely affect Magnolia’s future business, financial condition, results of operations, liquidity, and ability to finance planned capital expenditures.
3 unchanged sentences
The marketing of oil, natural gas, and NGL production depends in large part on the availability, proximity, and capacity of trucks, pipelines, and storage facilities, gas gathering systems, and other transportation, processing, and refining facilities, as well as the existence of adequate markets.
−Removed: Because of the significantly reduced demand for oil and natural gas as a result of the COVID-19 pandemic and the current oversupply of oil and natural gas in the market, available storage and transportation capacity for the Company’s production may be limited or completely unavailable in the future.
+Added: Because of the significantly reduced demand for oil and natural gas as a result of the COVID-19 pandemic and the current oversupply of oil and natural gas in the market, available storage and transportation capacity for the Company’s production may be limited or unavailable in the future.
If there is insufficient capacity, if the capacity is unavailable to the Company, or if the capacity is unavailable on commercially reasonable terms, the prices Magnolia receives for its production could be significantly depressed.
−Removed: As a result of continued or further storage and/or market shortages, the Company could be forced to shut in some or all of its production or delay or discontinue drilling plans and commercial production following a discovery of hydrocarbons while the Company constructs or purchases its own facilities or system.
−Removed: If the Company is forced to shut in production, it will likely incur greater costs to bring the associated production back online.
−Removed: Cost increases necessary to bring the associated wells back online may be significant enough that such wells may become non-economic at low commodity price levels, which may lead to decreases in proved reserve estimates and potential impairments and associated charges to earnings.
+Added: As a result of continued or further storage and/or market shortages, the Company could be forced to temporarily shut in some or all of its production or delay or discontinue drilling plans and commercial production following a discovery of hydrocarbons while the Company constructs or purchases its own facilities or system.
+Added: If the Company is forced to shut in production, it may incur greater costs to bring the associated production back online.
+Added: Potential cost increases associated with bringing wells back online may be significant enough that such wells may become non-economic at low commodity price levels, which may lead to decreases in proved reserve estimates and potential impairments and associated charges to earnings.
If the Company is able to bring wells back online, there is no assurance that such wells will be as productive following recommencement as they were prior to being shut in.
+Added: In the second quarter of 2020, the Company temporarily shut in some low producing wells due to depressed commodity prices.
+Added: Additionally, some of the Company’s non-operated wells were shut in.
+Added: Many of the wells have returned to production and there was not a significant impact on net production, however, should sustained periods of lower oil and natural gas prices persist, the Company may further shut in wells or curtail production.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.